$6.7M shortfall in ESU's budget

East Stroudsburg University is facing a potential $6.7 million budget shortfall going into the 2014-15 school year, according to officials.

CHRISTINA TATU

East Stroudsburg University is facing a potential $6.7 million budget shortfall going into the 2014-15 school year, according to officials.

The projection does not take into account any tuition increases, which would be up to the Pennsylvania State System of Higher Education's Board of Governors, said Kenneth Long, ESU's vice president of administration and finance.

In recent years, the board has historically raised tuition for state system students by about 2 to 3 percent each academic year.

If tuition is raised by 3 percent in the 2014-15 year, it would only raise about $2 million in additional revenue for ESU, still leaving the school facing a $4.7 million shortfall, Long said.

The increasing deficit can be blamed on a variety of factors, including ever-increasing salary and retirement obligations, Long said.

About 70 to 80 percent of the university's budget is earmarked toward personnel costs.

The university has also suffered from a decline in enrollment over the past four years, but so far, it appears enrollment will "remain relatively flat" going into 2014-15, Long said.

In addition, "there's a small uptick" projected for graduate enrollments in 2014-15.

To help close the deficit, last October, ESU administrators announced the layoffs of eight faculty members, the elimination of three degree programs, three minors and one non-degree department, to go into effect this fall.

Degree programs to be eliminated include a bachelor's in French, French secondary education teacher certification and music.

At a Council of Trustees meeting last week, trustees discussed the need to increase student enrollment.

If the university could grow its enrollments, "our problems would be significantly less," said President Marcia Welsh.

"We are projecting a flat growth next year. My concern is trying to get more students into the school, or if we can focus on holding onto students," said trustee and state Rep. Mario Scavello. "If we can get just 350 kids into the school, that would help us."

"The problem is, you have to have a positive attitude on campus to get students to come here," said council Chairman Pat Ross. "We have to have everyone working to the best of their ability and hold them accountable for what they do."

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